Superior Plus (OTCMKTS:SUUIF) vs. RGC Resources (NASDAQ:RGCO) Critical Analysis

Superior Plus (OTCMKTS:SUUIF) and RGC Resources (NASDAQ:RGCO) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.

Insider & Institutional Ownership

27.9% of Superior Plus shares are owned by institutional investors. Comparatively, 35.8% of RGC Resources shares are owned by institutional investors. 7.2% of RGC Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Superior Plus and RGC Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Superior Plus	0	5	1	0	2.17
RGC Resources	0	0	1	0	3.00

Profitability

This table compares Superior Plus and RGC Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Superior Plus	N/A	N/A	N/A
RGC Resources	13.01%	11.87%	4.19%

Earnings & Valuation

This table compares Superior Plus and RGC Resources”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Superior Plus	N/A	N/A	N/A	$0.19	29.50
RGC Resources	$95.33 million	2.43	$13.28 million	$1.34	16.63

RGC Resources has higher revenue and earnings than Superior Plus. RGC Resources is trading at a lower price-to-earnings ratio than Superior Plus, indicating that it is currently the more affordable of the two stocks.

Dividends

Superior Plus pays an annual dividend of $0.60 per share and has a dividend yield of 10.6%. RGC Resources pays an annual dividend of $0.87 per share and has a dividend yield of 3.9%. Superior Plus pays out 312.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. RGC Resources pays out 64.9% of its earnings in the form of a dividend. RGC Resources has increased its dividend for 22 consecutive years.

Summary

RGC Resources beats Superior Plus on 10 of the 12 factors compared between the two stocks.

About Superior Plus

Superior Plus Corp. distributes and markets propane, compressed natural gas and renewable energy in both the United States and Canada. The company operates through The United States Retail Propane Distribution (U.S. Propane), Canadian Retail Propane Distribution (Canadian Propane), and North American Wholesale Propane Distribution (Wholesale Propane), and Certarus segments. The U.S. Propane Distribution segment distributes propane gas and liquid fuels primarily in the Eastern United States, the Midwest, and California to retail customers, including residential and commercial customers. The Canadian Propane segment distributes propane gas and liquid fuels across Canada to retail customers, including residential and commercial customers. The Wholesale Propane segment supplies propane gas for the Canadian Propane and the U.S. Propane segments, as well as propane and other natural gas liquids to third-party wholesale customers in Canada and the United States. The Certarus segment provides low-carbon energy solution for transporting, compressed natural gas, renewable natural gas, and hydrogen. Superior Plus Corp. was incorporated in 1989 and is based in Toronto, Canada.

About RGC Resources

RGC Resources, Inc., through its subsidiaries, operates as an energy services company. It sells and distributes natural gas to residential, commercial, and industrial customers in Roanoke, Virginia, and the surrounding localities. The company also provides various unregulated services. It operates approximately 1,179 miles of transmission and distribution pipeline; and a liquefied natural gas storage facility, as well as owns and operates six metering stations. In addition, it produces biogas. RGC Resources, Inc. was founded in 1883 and is based in Roanoke, Virginia.